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THE REASSESSMENT OF OUR
COMMUNITY
Questions That Are Often
Asked When
A Municipality Is
Undertaking A Reassessment
WHAT IS A REASSESSMENT?
A reassessment is a program undertaken by a municipality to
appraise all real property inside its borders according to
its “full and fair value.” A revaluation and a reassessment
are synonymous, the difference between them is that a
reassessment is completed by the municipal Tax Assessor and
a revaluation is completed by an outside firm.
The goal of a reassessment program is to spread the tax
burden equitably throughout a municipality. Real property
must be assessed at the same value standard to ensure that
every property owner is paying his or her fair share of the
property tax. For example, two properties having
essentially the same market value should be paying
essentially the same amount in property taxes.
WHAT IS MEANT
BY “FULL AND FAIR VALUE?”
“Full and fair value” is the price at which the municipal
assessor believes a property would sell for at a fair and
bona fide sale by a private contract on October 1 of the
pretax year. The sale must be between a willing buyer and a
willing seller where the buyer is not obligated to buy and
the seller is not obligated to sell. New Jersey courts have
held “full and fair value”, “true value” and “market value”
to be the same.
WHY REASSESS NOW?
Reassessment may be needed when properties in a taxing
district are being assessed substantially below or above
true market value. The Ocean County Board of Taxation
ordered the township to conduct a revaluation in January of
2005 to be completed by tax year 2009. The last reassessment
in the township was in 1997. According to New Jersey
Division of Taxation records, the average township property
is assessed at only 60.73% of its market value.
WHO WILL CONDUCT THE REASSESSMENT?
The reassessment will be
completed by the municipal assessor's office. Two additional
property inspectors have been hired to assist in the
inspection of Manchester’s 15,000 homes. The inspections
will be completed between October 1, 2005 and October 1,
2007.
WHAT OCCURS DURING THE REASSESSMENT PROCESS?
During a reassessment, both the interiors and exteriors of
each property are physically inspected and building
dimensions are noted. The exterior of the property may also
be photographed by the inspector.
In addition, recent sales of comparable properties are
analyzed and may be adjusted to estimate the value of
property that has not been sold. Property, typically
purchased for investment purposes, is studied in terms of
its income-producing capability.
The Real Property Appraisal Manual for New Jersey Assessors,
prepared by the New Jersey Division of Taxation, is used in
estimating replacement cost values, especially for
residential properties.
All information believed to influence value will be gathered,
reviewed and analyzed in order to make a proper
determination of each property’s full and fair value.
A word of caution: Each property inspector should have a
photo identification visibly displayed. It should show the
name of the municipality as well as the individual’s name.
The inspector should provide a Letter of Introduction on
municipal letterhead that contains a telephone number for
questions or concerns. Ask to see the credentials of anyone
seeking to enter your home and do not admit anyone who
cannot produce this identification.
WHAT IS EXPECTED OF PROPERTY OWNERS?
Equitable reassessment depends on the cooperation of property
owners.
Interior inspections, especially, require that residents
cooperate with the property inspectors.
The validity of a market value depends on the collection of
accurate data.
Property owners have a stake in the outcome of the
reassessment program.
Any assistance a taxpayer can provide will aid in the total
data collection process. If there is information you
believe should be considered in the valuation, tell the
inspector. Better yet, write it down and give the inspector
a copy. We will make every effort to cause property owners
the least possible inconvenience.
Remember, the property inspectors are not necessarily
responsible for developing the market value estimate. Their
job is usually to collect pertinent information to be used
later to develop the property’s value.
WHAT WILL INSPECTORS LOOK FOR?
Inspectors will record such items as the type of interior
wall construction, the number of bathrooms, type of heat,
central air conditioning, size, and the percentage of
finished attic and/or basement areas, in ground pools and
number of fireplaces. The exterior inspection includes
measurements of each structure, such as garages or other
accessory buildings, determination of story height, roof
structure, and type of foundation and exterior wall
construction. The physical condition of the structure is
noted to establish depreciation factors. All factors
relative to market value are considered.
Examples of what would not be noted would be interior
decorations, fences, window air conditioners, gas grills,
and lawn furniture.
WHAT IF I'M NOT HOME?
If you’re not home on the inspector’s first visit, a notice
will be left asking you to call for an appointment. If you
don’t call for an appointment, a second visit to your
property will take place within a few weeks of the initial
visit. If the representative is unable to inspect your home
or if you refuse entry, the interior information will be
estimated. This may cause you home’s valuation to be at the
highest level for your property type.
WILL MY TAXES GO UP?
Depending on the value of your property and relative tax
levies, your taxes may increase, decrease or remain stable.
Although a reassessment usually results in a change of
nearly every individual assessment, it does not mean that
all property taxes will increase. Assessments are the base
used to apportion the tax burden. The tax burden is the
amount that your municipality must raise for the operation
of county and local government and the support of the school
system.
A reassessment does not necessarily mean an increase in taxes
for every homeowner. The tax rate will go down significantly
in 2009 to compensate for the increase in the assessed
values. Since not all properties have appreciated in value
at the same rate, some tax bills will go up, some will stay
the same and others will go down.
WHAT IS A TAX RATE?
The tax rate is determined by dividing the tax levy (annual
amount to be raised through taxation by the county
government, schools and the municipality) by the total
assessed value within the municipality.
HOW ARE TAXES CALCULATED?
(Assessed
value ÷ 100) x Tax Rate = Amount of Taxes
WILL TAXPAYERS BE INFORMED OF THEIR PROPOSED ASSESSMENT?
The notice of the new assessed values for each property will
be mailed in the fall of 2008. The impact of the new
assessments will not affect the property owner’s tax bill
until the 2009 tax year.
WHAT IF A TAXPAYER IS DISSATISFIED WITH THE PROPOSED
ASSESSMENT?
A notice with the new assessed value will explain how to
arrange for a personal informal hearing with a
representative from the tax assessor’s office to review the
proposed assessment. Taxpayers attending the review should
be prepared to support any disagreement regarding the
appraised value of their property. For example, recent
sales of similar or comparable properties are an indication
of value. A recent purchase of the property may also help
to support a view as to value. Also, the cost of recently
constructed comparable buildings could support a belief of
fair market value.
WHAT CAN A TAXPAYER DO IF HE IS UNSUCCESSFUL IN HAVING THE
VALUATION OF HIS PROPERTY REVISED AT THE INFORMAL HEARING?
If the valuation dispute is not resolved prior to the filing
and certification of the tax list on January 10, a formal
appeal may be filed with the Ocean County Board of Taxation
on or before April 1 of the tax year. The county board of
taxation may be reached at:
Ocean
County Board of Taxation
118 Washington Street
PO Box 2191
Toms River,
New Jersey 08754-2191
Voice –
732.929.2008
Fax –
732.506.5197
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